Selling online nutrition store making over $6k avg. per month.

Hey guys, I am posting another one of my friends businesses for sale on here.

It is an online nutrition store with over 1400 registered customers.

This is the sales revenue from the last 7 months:
May 06 $1,668.59
Jun 06 $13,983.23
Jul 06 $17,512.06
Aug 06 $14,691.56
Sep 06 $10,443.58
Oct 06 $8,472.22
Nov 06 $6,532.46

Average Monthly Total: $10,471
Total for 7 months: around $73,301

Profits on sales usually ranges from 20-30% of sales revenues, averaging $2904-$3141 per month right now.

*Right now is slow months for supplement orders, right before summertime and beginning of year is when sales picks up.

It runs on a completely customized version of OS Commerce

URL: www.supplementkings.com

Right now orders are being filled and shipped by my friend because his physical store carries some of the inventory, the rest is filled by a dropshipper. He has told me that if someone buys the site and wants it 100% dropshipped he can arrange that.

Right now the only form of advertising the site is running is google adwords at around a cost of $300 per month. So there is much room to grow.

He is looking for serious buyers as this is allready an established business with a very good reputation and customer base.

Starting Bid: $10,000
BIN: to be determined if interest is shown.

Please post all questions on forum so we dont get repeat questions in PM, I will accept PM offers however.

Thanks!

 

What is the profit margin?

 

thank you, i have edited my thread to state margins below sales!

 

I buy from them all the time - I hope the next owner's as good to his clients!

 

Few questions: Why were sales so low in May, could you include a few more months prior. Can you give a rough estimate as to the percentage physically shipped vs dropshipped, and what the effects on margin might be if it were converted completly to dropshipping.

 

hello.

i am interested in your site.

please send me a more complete overview to your current marketin/promotion campaign...

I would like a better understanding of your current marketing to determine what if any further marketing i can do for the site etc...

Thanks in advance.

KP

 

These were questions from a PM, i figured I would post here for everyone to see:

Why is it being sold? - my friend prefers retail sales in a physical store and doesnt have time for it.

Will the drop shipping decrease profits? - if at all, 5% at the most.

When does the seller want to sell? - whenever he gets an acceptable offer

How could the site be transfered over to me? - its hosted at godaddy currently, free push to new owner.

How much time and maintenance is required for the site? - if drop shipped at most 30min per day to answer emails.

 

-Why were sales so low in May,

CORRECTION: sales were low in may because that was the month the server went down for a couple weeks. The months prior to that was when the site was being completely rebuilt and customized to handle more products and volume.


-Can you give a rough estimate as to the percentage physically shipped vs dropshipped

as of right now most is being shipped physically since my friend stocks many of the products allready in his store... makes sense. but the drop shipper carries everything on the site also, which leads to your next question -->

-and what the effects on margin might be if it were converted completly to dropshipping.

If there is even a change at all, at most 5% less profit margins, but definatly a lot less work.

 

Like stated at the first post, the only marketing that has been done is google adwords. Maybe there is some talk about it in forums but not by me or my friend. Anyone with SEO experience or site optimization will be able to dramatically increase traffic coming to the site as we are far from SEO experts.

-There is still much advertising that can be done.

 

proof of sales to those who are interested, please nobody ask why the first few months are zero and read 2 posts up.

 

Sorry for all the posts, but I keep getting questions PMed instead of posted on the thread, and I want to minimize double questions.

1. Who handles the returns, damaged, etc?

-there has never been a returned or damaged good in the year and few months the site has been up. but if it was the drop shippers fault, they would cover it. If it was your error, then you fix it !

2. Some of the items are dropshipped - who is the dropshipper, what state, shipping costs, etc

-dropshipper will be told to winning buyer, shipping costs do not really matter as they are in the United States and they dont ship to you.

3. Do they ship internationaly?

-yes

4. How easy it is to update products?

- just as easy as posting on this forum.

 

Is adwords the only form of advertisment u use? Or do u do other forms of advertismements offline and online?

 

How much do you spend on adwords?

 

Can you provide proof of income i.e snapshot of paypal account or 2co account or whatever is being used to process payments?

 

yes, just google adwords. like i said maybe some forum talk but not by us.

 

proof of revenue for last few months

 

I just bought a site off the owner and both he and Eric have been very helpfull. These are good guys to deal with. Good luck with the sale.

 

You state that its averaging 6k in revenue and 20 to 30% profits from that yet you say profits are 2904-$3141 . Wouldnt this equate to a 50% profit margin?

 

Well, yes based on the 6k average. I posted this thread before I had all the info and found the average was higher than 6k, but it was too late to change the title of the thread.

 

Some more questions answered:

Is the site's net income 20% of the sales?
The sales are from 6 to 8 k the last two months, is this 1200 to 1600 profit?

This is the slow months but yes that is the rough profit. The site has the potential to do alot more

What about the authorize.net account, does this stay with a new owner, or would one have a new payment gate?

they can have the exisiting payment gate